BRITISH FINANCE

Evening Post, Volume CXI, Issue 36, 12 February 1931, Page 14

BRITISH FINANCE

NEED FOR ECONOMIES

SNOWDEN SPEAKS OUT '

DEBATE IN COMMONS

United l'rcss Association—By Electric Tel«» graph—Copyright. (Received 12th February, 3 p.m.) LONDON, 11th February. The long-expected debate on. unem« ployinent and the economic situation opened in the House of Commons oa the Conservative vote of censure on the question of national economies, with special reference to the Unemployment Insurance Fnud. In the course of the debate the- Chancellor of the Exchequer, Mr. Philip Snowden, made an important statement on the financial position. He said:— "There is no secret that there will b« a heavy deficit at the end of the financial year. No Budget would or could stand the unexpected strain caused by, the past year's increase in unemployment. Expenditure has increased and revenue declined. Productive capacity; has fallen .off 20 per cent. "When the history of the way the war-debts, debt to Washington was incurred —its recklessness, extravagance, and unnecessary eommitments-^-comes to be known I am afraid posterity will curse those responsible for it." '-."". "Despite world depression," continued the Chancellor, "Britain has suf» fered less than any other great industrial country. We arc the world's financial centre, and other nations are watching us. Any well-grounded fear thaf Britain's Budgetary equilibrium is unsound might have disastrous consequences. . | Sir Eobert Home (Conservative)', thanked Mr. ■ Snowden for one of the gravest warnings' ever uttered from the Treasury Bench. It would brace the country to a new view of its responsibilities and duties, but, despite the grave warning, Mr. Snowden had allowed the introduction of a series of Bills all involving large expenditure, ,such as the School Age and Land Bills. The Government had had every chanc« and opportunity, but had improvidently spent the nation's sustenance and depleted the country's resources. Mr. W. Graham, President of thei Board of Trade, replying, said that' whatever Government had been ia office would have been faced with a similar crisis. The enormous growth' of unemployment was due mainly .to the fall in commodity prices. He sawlittle sign that the bottom was yet touched. There was no need for pessim» ism and despair, but for sustained, enlightened, constructive optimism, on. the realisation that the country could survive and build up a far greater . appeal to world trade than ever before. The Conservative motion was defeated by 310 votes to 235, and the Liberal amendment, challenged only by Left Wing Labourites, was carried by 468 votes to 21. Mr. Snowden's speech is generally regarded as one of the most remarkable' and important Parliamentary utterances for a long time. Labour members ara alarmed at the implications. Some believe that they see in it the death knell of the Government, because he definitely rejected all new expenditure and contemplated economies at the expense of the unemployed. Th/ reference to temporary sacrifices for all is regarded as an allusion to wage reductions as well as curtailment of State activities of a benefieenflcind. Tho "Daily Telegraph's" political Correspondent asserts that Cabinet has already decided on 10 per cent reduction of its own salaries. The saving thus effected will,, of course, be merely a drop in the ocean,, but is is intended as a practical gesture in the hope that tho example will be widely, folio wed. He adds that some members of Parliament may follow the example and that cuts also in. the Civil Service as probable.